Few developers act responsible

Few developers act responsible

JAKARTA (JP): The city administration's housing program is
being hindered by the reluctance of private developers, with
only four of 66 developers meeting their obligation to build low-
cost housing.

Head of the City Program Agency Hadi Laksana said yesterday
that based on gubernatorial decree No. 540/1990, the city's 66
developers of luxury buildings are obliged to build low-cost
apartments.

Under the decree, the private developers are required to
provide 20 percent of their commercial sites for low-cost
apartments.

"Their land appropriation permits were issued in the period
between 1991 and 1994," Hadi reported.

However, he added, up to now only four developers have
fulfilled their obligation to build a total of 988 low-cost
apartment units.

The four developers are PT Danayasa Arthatama with 240 units
in Tambora, West Jakarta, PT Catur Swasakti Utama with 160 units
in Penjaringan, West Jakarta, PT Kuningan Persada with 292 units
in Tanah Tinggi and another 296 units in Bendungan Hilir, Central
Jakarta.

"PT Mandara Permai is currently building 3,000 units of low-
cost apartments in Pantai Indah Kapuk, West Jakarta. The project
is expected to be completed by the end of 1997," Hadi said.

Currently, PT Setdco Graha Mandara is still negotiating to
build 288 units of low-cost apartments in Tebet, South Jakarta.

A source at the city administration, who refused to be named,
said that the developer agreed to fulfill its obligation after
being threatened to face the revocation of its permit.

The private developers have been asked to take part in the
development of the low-cost apartments as the city administration
can only manage to build only 3,150 units per year, or 30 percent
of the total demand. The total demand is projected to reach
10,500 units per annum.

Hadi said that his office will remind private developers to
fulfill their obligation.

There have been a total of 7,163 units of low-cost apartments
built since 1985 in the city, whose sizes range from 18 square
meters to 54 square meters. (yns)